September 30, 2017 • 2 min read
Feasibility study for South Australia's hydrogen roadmap
How we helped the South Australian Government assess the possibilities for renewable hydrogen
We delivered a green hydrogen feasibility study and contributed positively to the South Australian hydrogen roadmap.
The South Australian Government, Department of Premier and Cabinet (DPC), wanted answers to three questions in relation to green hydrogen in South Australia:
1. What role can hydrogen play in decarbonising the South Australian economy, including the transport sector?
2. Can South Australia competitively produce and export green hydrogen?
3. Is there scope to participate in a hydrogen industry supply chain, exporting manufactured products and services?
The outcome of this study would be integrated into the South Australian ‘hydrogen roadmap’ which was focused on helping to drive the renewable hydrogen economy. Finding the answers to these questions presented additional challenges such as assessing the scale of the technology advancements and ensuring all stakeholders had an active voice in the assessment.
The study was undertaken by our Melbourne office and supported by our people in Perth and Adelaide (Australia), and Houston (USA).
We worked closely with the DPC and a project steering group to develop plausible hydrogen production and value-add product pathways – from energy resource through hydrogen production to end markets – that could be implemented in South Australia over the next 10 years. The selection of the technologies and pathways involved a technology and commercial readiness assessment followed by a location selection.
We also worked with subject matter experts Siemens and ACIL Allen. ACIL Allen provided detailed forecasting of the electricity and gas markets, while Siemens provided baseline information relating to electrolyser technology.
Through the project we were able to provide a robust fact base which enabled the DPC to articulate a clear pathway for the role of green hydrogen in securing South Australia’s future energy needs.
The project also had some positive outcomes for the potential of utilizing green hydrogen. The financial results found the use of green hydrogen for fertilizer, transport and large-scale export had a positive NPV for 2022. The impact of these projects would have a positive impact on employment, local development, manufacturing industries, skill development and would drive the implementation of more renewables.
During the completion of the study, South Korea announced its commitment to run 26,000 buses on hydrogen and have been in dialogue with the South Australian Government about South Australia providing the hydrogen fuel. To do this, South Australia would require the construction of around 17 plants, with an estimated capital requirement of more than AUD14 billion. In order to provide the electricity needed to produce hydrogen, the development of approximately 8,700 MW of renewable energy projects will also be necessary.
buses in South Korea could soon be powered by South Australian hydrogen fuel
of renewable energy projects will be necessary to support the required production of hydrogen